Thai shares look set to trade higher today trailing a rise on Wall Street and positive openings in most regional bourses after a strike in Kuwait that slashed its oil output by more than half helped pull crude prices off their lows. The DJIA’s best close in 9 months was also helped by lower expectations for Fed rate hikes, even in June. Most of today’s local factors reflect the government’s efforts to steer the Thai economy in the right direction in the longer term, i.e. trade talks with the US including Thailand’s possibly joining the TPP, structural reforms towards innovation economy.
Local issue
“Thailand 4.0” to be proposed. The 12 public-private steering committees under the Pracha Ratch project have proposed “Thailand 4.0”, a master plan aimed to set up an innovation economy within a decade. Under the plan, Thailand will be turned into a regional innovation hub by developing R&D, human resources, as well as reforming educational, legal, and other systems. (The Nation)
“Thailand 4.0” to be proposed. The 12 public-private steering committees under the Pracha Ratch project have proposed “Thailand 4.0”, a master plan aimed to set up an innovation economy within a decade. Under the plan, Thailand will be turned into a regional innovation hub by developing R&D, human resources, as well as reforming educational, legal, and other systems. (The Nation)
Renewed TIFA talks with US. Commerce Minister Apiradi Tantraporn said Thailand and the United States will expand trade and investment cooperation under the Trade and Investment Framework Agreement (TIFA) for the first time after meetings were suspended for 13 years. Both countries will also discuss the possibility of Thailand joining the Trans-Pacific Partnership (TPP), while Thailand will ask for more Thai goods to come under the United States' Generalized System of Preferences (GSP). The meeting will be held 20-22 Apr. (The Nation)
The state’s plan to legalize loan sharks will seek cabinet approval soon in a move to regulate grey-area lenders and facilitate low-income earners to receive loans. Under these laws, underground lenders will be allowed to charge borrowers at a high rate but not higher than the cap, yet the ceiling rate has not been revealed. (Bangkok Post)
Global issues
White House: Bill to sue Saudi won’t pass: The White House expressed confidence that Saudi Arabia would not follow through on a reported threat to sell US assets if Congress passed a bill that could hold the kingdom responsible for any role in al Qaeda's Sept. 11, 2001 attacks. Saudi Arabia told US lawmakers it would be forced to sell up to US$750bn in Treasury securities and other US assets in response to the bill if it passed. Family members of victims who were killed in the September 2001 attacks urged President Obama to support the legislation. (Reuters)
White House: Bill to sue Saudi won’t pass: The White House expressed confidence that Saudi Arabia would not follow through on a reported threat to sell US assets if Congress passed a bill that could hold the kingdom responsible for any role in al Qaeda's Sept. 11, 2001 attacks. Saudi Arabia told US lawmakers it would be forced to sell up to US$750bn in Treasury securities and other US assets in response to the bill if it passed. Family members of victims who were killed in the September 2001 attacks urged President Obama to support the legislation. (Reuters)
The US dollar edged higher against the yen and commodity currencies pared losses after traders viewed a strike by Kuwaiti oil and gas workers as supportive of oil prices and anticipated low volatility this week. The dollar was last up 0.07% against the yen at ¥108.81 after slumping to a session low ¥107.81, which was near a 17-month low of ¥107.61 touched a week ago. (Reuters)
US Treasury yields rose as oil prices ended off their lows and as investors focused on next week's Federal Reserve meeting. Benchmark 10-year notes fell 6/32 in price to yield 1.77%, up from 1.75% on Friday. (Reuters)
USA
Wall Street shares rose on Monday and the DJIA closed above 18,000 for the first time since July. Shares of consumer companies including Hasbro and Walt Disney helped buoy US stocks, while investors braced for a flurry of quarterly earnings reports through the week. Walt Disney shares rose after its "Jungle Book" film dominated the weekend box office, while Hasbro jumped after reporting better-than-expected quarterly profit and revenue. Energy shares also rose as crude prices pared losses. (Reuters)
Wall Street shares rose on Monday and the DJIA closed above 18,000 for the first time since July. Shares of consumer companies including Hasbro and Walt Disney helped buoy US stocks, while investors braced for a flurry of quarterly earnings reports through the week. Walt Disney shares rose after its "Jungle Book" film dominated the weekend box office, while Hasbro jumped after reporting better-than-expected quarterly profit and revenue. Energy shares also rose as crude prices pared losses. (Reuters)
The US NAHB Housing Market Index stabilized at 58 in April, versus market consensus forecast of 59. (Reuters)
Europe
European shares recovered on Monday after a weak open, with auto and travel stocks gaining and the energy sector off its lows after a meeting by major exporters in Doha collapsed without a deal to freeze output. (Reuters)
European shares recovered on Monday after a weak open, with auto and travel stocks gaining and the energy sector off its lows after a meeting by major exporters in Doha collapsed without a deal to freeze output. (Reuters)
Asia
China leaders have sounded more confidence in the economy in recent weeks but their policy advisers caution it is too early to call an end to a cycle of easing that began in 2014. PM Li Keqiang said China's economic indicators had shown signs of improvement in 1Q16, although the country’s economic growth slowed to 6.7% in the quarter, its weakest pace since early 2009. However, stronger-than-anticipated activity indicators for March suggested the economy was gaining momentum as it headed into 2Q16. Industrial output, exports and retail sales were all surprisingly strong. (Reuters)
China leaders have sounded more confidence in the economy in recent weeks but their policy advisers caution it is too early to call an end to a cycle of easing that began in 2014. PM Li Keqiang said China's economic indicators had shown signs of improvement in 1Q16, although the country’s economic growth slowed to 6.7% in the quarter, its weakest pace since early 2009. However, stronger-than-anticipated activity indicators for March suggested the economy was gaining momentum as it headed into 2Q16. Industrial output, exports and retail sales were all surprisingly strong. (Reuters)
The Japanese share market fell more than 3% on Monday after a series of earthquakes measuring up to 7.3 magnitude struck a southern manufacturing hub, killing at least 42 people and forcing major companies to close factories. (Reuters)
Commodities
Oil prices edged lower on Monday after producers failed to agree on a plan to curb global supply at a meeting in Qatar on Sunday. Crude oil ended well off the day's lows, however, with a strike in Kuwait slashing the country's oil output by more than half. Brent crude settled down 19 cents (-0.4%) at US$42.91 a barrel, after falling US$3 earlier in the session, while US WTI crude closed down 58 cents (-1.4%) at US$39.78 a barrel, after hitting US$37.61 earlier. (Reuters)
Gold steadied on Monday as European shares dipped following the failure by oil producers to agree an output freeze, which sent crude prices tumbling. Spot gold was up 0.1% at US$1,233.65, rebounding after a 0.5% loss last week. (Reuters)
Source: aws.co.th / settrade.com
